HASSHPL2 - Economics Flashcards.

Specialisation

Where a country will aim to produce products that they have an advantage in producing rather than trying to produce all consumption goods.

Trade

Countries will trade with other countries to obtain goods they do not produce

Interdependence

Dependence between participants in an economy that is, the reliance of consumers workers, business and government on each other.

Allocation

An analysis of how limited resources (also called factors of production) are distributed among producers, and how scarce goods and services are divided among consumers

Markets

Any structure that allows buyers and sellers to exchange any types of goods and services and information

Economic Growth

Increase in the capacity of an economy to produce goods and services, compared from one period of time to another

Living Standards

Level of wealth, comfort, material goods and neccessities available to a certain socio economic class in a certain geographic area.

Traditional Economy

• What: Goods produced based on customs and traditions.

• For whom: Mainly for local communities or families.

• How: Using traditional methods passed down through generations.

Amish and Inuit

Capitalist Economy

• What: Goods and services produced mainly for profit.

• For whom: Consumers who have the ability to pay.

• How: Driven by market demand, competition, and private ownership.

America and Australia

Socialist Economy

• What: Goods produced to meet societal needs.

• For whom: The community or society as a whole.

• How: Through planned, collective efforts managed by the government or community.

Planned Economy

An economic system where the government or a central authority makes all decisions about the production and distribution of goods and services. It sets goals and plans what to produce, how to produce, and for whom to produce

Market Economy:

• An economic system where decisions about production and distribution are driven by supply and demand in the free market, with little government intervention. Prices are determined by consumers and producers interacting freely.

Feature	Capitalist	Socialist	Market	Planned
Ownership of Resources
Price Decisions
Equality Focus
Examples

Feature	Capitalist	Socialist	Market	Planned
Ownership of Resources	Mostly private	mostly government	private	government
Price Decisions	market forces	government	supply and demand	government
Equality Focus	low	high	low	high
Examples	USA, Australia	cuba, north korea	australia, japan	north korea

Consumer

buys, goods and services, provides labour

Producer

makes goods/services hires worker, sells to consumers

Government

collects, taxes, spends on services (education, defence, welfare)

Financial institution

accept savings, gives loans, helps more money through economy

Economic

The study of economics is how we use our limited resources to fulfill our unlimited wants and needs. To do this as consumers, we make choices. The study of economics is understanding how and why we make these choices.

Nation-States (Countries)

Definition: Governments that make laws, set trade rules, and shape economies.
Example: Australia signs trade deals and sets tax policies.

Central Banks

Definition: Control money, interest rates, and inflation.
Example: The Reserve Bank of Australia changes interest rates to manage the economy.

International Organisations

Definition: Global groups that support and regulate world trade and finance.
Examples: IMF gives loans, WTO sets trade rules, UN promotes global cooperation.

Multinational Corporations (MNCs)

Definition: Big companies that operate in many countries.
Examples: Apple, Toyota, Nestlé make and sell products worldwide

Financial Markets

Definition: Places where shares and currencies are traded.
Example: The New York Stock Exchange influences global money flow.

Banks and Financial Institutions

Definition: Lend money and support global business.
Example: Westpac funds trade between Australia and Asia.

Labour & Labour Unions

Definition: Workers produce goods; unions protect workers’ rights.
Example: A global union fights for fair wages in clothing factories.

Non-Governmental Organisations (NGOs)

Definition: Groups that push for fair trade, rights, and sustainability.
Example: Oxfam campaigns against child labour.

Consumers

Definition: People who buy goods and shape global demand.
Example: Millions buying iPhones affect Apple’s production choices.

Trade Blocs

Definition: Groups of countries that trade freely together.
Examples: EU, ASEAN boost trade and lower tariffs among members.

Technology Companies

Definition: Create digital tools that power global trade and communication.
Examples: Google and Microsoft support online business and data use.

Investment:

Refers to any spending by producer on capital equipment (for example machinery) will increase production in the future.